How to enter Fair Fund Distribution with no 1099 tax form

I received a settlement (Fair Fund Distribution) from Valic for breaching its fiduciary duty to its clients. The 403k account has been closed for almost 5 years and I am over 60 years old now. The total distribution is $650, $100 was remediation-interest and $550 was remediation principal. The settlement noted that distributions amounts with an interest component less than $600 will not receive any tax form. I can create a 1099-int for the interest portion. For the remediation principal. I am willing to treat the entire amount as regular income, but without a tax form how do I enter this into turbotax and where would I get the necessary information?

1525

Level 15

Mar 17, 2022 4:03:37 AM

All of it can be reported as one amount since it is all taxed the same.

Follow these directions :

Down the left side of the screen, click Federal.
In the center of the screen, click Income & expenses.
On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
The next screen asks, Did you receive any other taxable income. Click Yes.
On the next screen, Other Taxable Income, enter a description and the amount. Click Continue.
On the next screen click Done.

The income will be reported on Schedule 1 line 8 with the description that you entered.

Returning Member

Mar 20, 2022 12:42:15 AM

I have already entered the interest portion in the 1099-int section and then the principle in the Other Taxable Income section you mentioned. Will this work or should I have entered the total amount in Other Table Income section.

I seems that both methods would yield the same resulting taxes. However, I am not sure if my way would add any confusion?

Level 15

Mar 20, 2022 4:11:06 AM

Either way is fine ... it is all taxed the same in the end.

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How to enter Fair Fund Distribution with no 1099 tax form